Courts will consider the adequacy of the consideration when:
A) one party clearly has the better side of the deal.
B) one party has more business experience than the other.
C) one party claims to have been defrauded.
D) one party shows a much lower price nationally-advertised on television.

Question

Quizplus · Accepted Answer

When one party claims to have been defrauded, it is important for the court to consider the adequacy of the consideration. This is because fraud can often involve a lack of adequate consideration, meaning that one party may have been coerced or misled into agreeing to the contract. Therefore, the court will examine whether the consideration provided by the defrauding party was sufficient to justify the agreement. The other options do not necessarily relate to the adequacy of consideration.

Courts Will Consider the Adequacy of the Consideration When